Newark city officials are moving forward with ordinances aimed at stopping new or expanded fossil fuel facilities within the city, a step that could place them in opposition to recent state actions intended to promote affordable and reliable energy sources.
One ordinance, introduced by Newark City Council President C. Lawrence Crump, seeks to amend land-use codes to prohibit new or expanded fossil fuel operations, including power generation. Another measure would ban the use of city funds for such purposes. Both ordinances also propose halting the renewal of business licenses necessary for fossil fuel facility operations. A vote is expected after a second public reading scheduled for Wednesday, Feb. 4.
This local initiative comes shortly after Governor Mikie Sherrill signed Executive Order No. 2, which allows for waiving certain compliance requirements on permitting and siting electricity generation and grid stabilization projects. The order also instructs the Department of Environmental Protection (DEP) to expedite permits needed for modernizing existing gas-fired power plants.
Ray Cantor, Deputy Chief Government Affairs Officer at the New Jersey Business & Industry Association (NJBIA), commented on the potential implications: “This is potentially a big deal on two fronts,” Cantor said. “First, it sets a precedent of a municipality passing an ordinance that conflicts with state energy priorities – and asks what happens to the city should that happen.
“But probably more importantly, it creates a paradigm where a town that has this very important infrastructure could stop energy production that all of the state’s residents rely upon. And that’s when things could get scary for the entire state.”
Questions have been raised about whether Newark’s ordinances would be legally sustainable. In 2019, Berkeley, California became the first U.S. city to ban natural gas hookups in new buildings; however, four years later, the Ninth Circuit Court of Appeals found such bans preempted by federal law under the Energy Policy and Conservation Act (EPCA). Berkeley repealed its ban in January 2024.
Cantor added: “The bottom line is New Jersey needs to increase its energy load and its infrastructure for all kinds of energy sources,” he said. “We have seen our energy costs skyrocket as a result of New Jersey becoming a net importer of energy, rather than an exporter of energy.
“Gas remains our most affordable and reliable source of energy. We look forward to continuing to address those challenges with the Sherrill administration.”
The NJBIA represents employers across many sectors—including manufacturing, retail, contracting, and services—and provides advocacy and resources aimed at supporting business prosperity in New Jersey through collaborations with government and educational institutions (https://njbia.org/).
Founded in 1910 as the New Jersey Manufacturers Association before expanding its membership in later decades (https://njbia.org/), NJBIA is now considered one of the largest statewide employer organizations in the United States (https://njbia.org/). The association operates from its headquarters in Trenton under president and chief executive officer Michele Siekerka (https://njbia.org/).
